#	Description of procedure	Existence/occurrence	Valuation/ accuracy	Completeness	Rights and obligations/ cut-off	Presentation and disclosure
	Cash
1	Bank confirmations: Obtain bank confirmations for all accounts, including the accounts closed during the year, to confirm the relationship with the bank, including contingencies, liens, pledges, restrictions on the clients assets, guaranteed amounts, etc.	X	X	X	X	X
2	Analytical review: Compare the listing of cash accounts with those of prior periods and investigate any unexpected changes (e.g., credit balances, unusual large balances, new accounts, closed accounts) or the absence of expected changes.	X	X	X
3	Bank reconciliations: Examine the client's bank reconciliation as of year-end, including cash-in-transit accounts, to verify the proper reconciliation of bank statements and general ledger accounts. (a) Trace the bank balance to the confirmation. (b) Trace the book balance to the general ledger. (c) Test the mathematical accuracy of the reconciliation. (d) For those amounts greater than 60 percent of PM, test deposits in transit and selected outstanding cheques by tracing from the bank reconciliations to the cut-off bank statement (or subsequent month's bank statement) and vice versa. (e) Review the nature and extent of other reconciling items for reasonableness and investigate any large (> 60 percent of PM) or unusual reconciling items.	X	X	X
4	Cash cut-off: Test cut-off of cash receipts and cash disbursements for transfers between different bank accounts at the balance sheet date. Obtain or prepare a schedule of bank transfers made in the five days before and after year end. For those greater than 60 percent of PM, trace to the bank statements.	X		X
5	Cash reconciliation: Examine the client's year-end reconciliation of physical cash on hand to cash accounts balances in the books. Investigate large (>60 percent of PM) or unusual reconciling items and determine the proper revenue recognition.	X	X	X
	Accounts Receivable trade
6	Agreement of sub-ledger with general ledger: Agree receivables sub-ledger to the general ledger and investigate large (>60 percent of PM) and unusual reconciling items.	X		X
7	Analytical review: Compare the accounts receivable aging schedule with those of prior periods and note any significant changes (e.g., changes in major customers, in major customers balances in the percentage of overdue accounts, in the proportion of credit balances). Obtain explanations for unexpected changes.	X	X	X		X
8	Confirmations and subsequent cash receipts: Verify the existence of trade accounts receivable through confirmation or subsequent cash receipts or a combination of those procedures. (a) Select customer account balances greater than 60 percent of PM to prepare and send positive confirmations of year-end balances. (b) For confirmation requests for which no reply is received, vouch customer account balance through cash receipts received after year end. If amounts still remain untested, then vouch to the supporting invoice and shipping document.	X	X		X	X
9	Accounts receivable cut-off: Inspect sales journal, invoices, shipping documents, and other supporting documents five days before and five days after the year-end date. Select those transactions greater than 60 percent of PM and verify that the sales were recorded in the proper period.	X		X
10	Credit balances and unusual items: Scan the Accounts Receivable listing and identify any credit balances and investigate large items.	X		X
11	Returned goods: Evaluate significant assumptions made regarding the frequency and percentage of goods returned for which refunds are given and verify mathematical accuracy of respective amount.	X	X	X	X	X
	Revenue/Sales
12	Analytical review: Perform an analytical review and investigate any significant changes or lack of expected changes.	X		X	X
13	Analytical review of gross margin: Review the monthly/quarterly trading results to gain an understanding of the trends relating to gross margin by major product groups, geographical areas, and income-generating units. Investigate unusual discrepancies, trends, and relationships.	X	X	X
14	Revenue recognition procedures: Test recorded sales invoices to the records of products shipped; agree dates, customers, products, quantities, prices, and amounts. Select the sample so as to ensure at least 25 percent of the revenue balance has been tested.	X
15	Sales cut-off: Refer to work performed in Accounts Receivable point 9.	X		X
16	Credit memos: Investigate large or unusual credit memos issued subsequent to year end. Coordinate with the work performed in Accounts Receivable.	X	X

Could you please identify which sampling method can be used for these procedures and why?

The sampling methods available to auditors are:

random selection

systematic selection

haphazard selection

block selection

judgemental selection